GUIDANCE-NOTES-FOR-COMPLETION-OF-ACTION-2-BUDGET-FORMS by sdaferv

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GUIDANCE-NOTES-FOR-COMPLETION-OF-ACTION-2-BUDGET-FORMS

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									GUIDANCE NOTES FOR COMPLETION OF BUDGET FORMS


Equal will fund up to a maximum of 50% total project costs. In order to cover all core
central management costs that are essential to the programme - all bids to the
EXODUS project will receive 45% of the total projects costs and therefore actual
costs have to be matched at 55%. The EXODUS project will fund up to a maximum
of 20 pilot projects across London and the South East – the total Equal funds
available for all projects is £2.12m – value of total project costs £4.76M. EXODUS
will consider bids in the region of £50000 - £200000 per local consortium.

Please complete the budget forms ensuring that items of expenditure are broken
down into the relevant categories – staff / beneficiary / other. Breakdowns should
cover total projects costs and not just actual costs relating to Equal funding [ie cost to
be funded by Equal max 45% and costs to be used as match min 55%]. Please
provide as much detail as possible for each item of expenditure and avoid lump sum
amounts. Staff costs should clearly state – job title, % fte, salary and should include
on costs and increases.

In kind match funding ie staff time / overheads / premises MUST be detailed in the
expenditure budget as well as in the match funding worksheet [this is just a total of
the match funding] as we need to provide details of total project costs. If you are
providing cash match funding to the project please enter the amount in the final
worksheet only.

If you have any queries regarding completion of the budget forms please contact:-

Clair Leach
EISS
University of Kent
Keynes College
Canterbury
Kent CT2 7NP
Tel 01227 823482
Email : c.m.leach@kent.ac.uk

What can you claim?

ESF and the match funding can support all costs relating to DP activity as long as
they are eligible and you include them in your approved budget. All costs, including
any start up and evaluation costs, must be incurred during the lifetime of the DP 1.
Your DP start and end dates for each Action should take account of this type of
activity. In the DP Closure Report all costs must be actual – they cannot be notional
(theoretical) or estimated and cannot include any profit or compensation for lost
opportunities.

Ineligible costs



1
    The only exception to this rule is the cost of the final Article 4 Verification certificate
submitted with the Closure Report. When you complete your Closure Report, you will need to
include an estimate of the amount of the verification before presenting the claim to your
reporting accountant, and then alter this as necessary.
There are some costs that are not eligible. The list is not complete. These include:

 loan and current account interest;
 other financial charges (except for transnational financial transactions);
 consultancy fees for activities such as filling in applications, or management fees
  or commissions;
 staff time spent filling in applications;
 buying equipment or buildings (threshold currently £1,000);
 costs of finance leases (see leasing section);
 relocation expenses;
 gifts;
 charging again for equipment or buildings which have previously attracted EU
  funding;
 any expenditure that does not clearly relate to the DP and its activities; and
 any expenditure, which is not supported by written sources.

VAT

VAT is an eligible item of expenditure only if your organisation cannot reclaim it.
The treatment of VAT will vary depending on your status. It is very important for you
to decide your VAT status with your local Customs and Excise Office.

Eligible costs

The following gives some examples of eligible expenditure and highlights areas
which you need to consider.

Staff costs

 Staff costs can include employer’s national insurance and superannuation costs.
 In the application you must include any expected increases in grade or pay scales
  for the whole period of the application.

 Where staff are involved with non-ESF work, you must not include the non-ESF
  elements. Decide how you are going to recognise and record these costs before
  the DP activities start as you can only include your actual expenditure in the claim.
  Each member of staff involved with the ESF project should complete a timesheet
  identifying ESF and non-ESF work in blocks of one hour or more. However an
  exception can be made where a staff member is only working for a few hours each
  month on ESF (for example, a specific meeting) and there is no weekly pattern of
  ESF or non-ESF working. In this case they should just record the hours on ESF
  work.

 The application must clearly show the number of staff involved in carrying out the
  DP and their individual pay rates where these vary.

 Travel and living expenses must relate only to ESF work.

 To work out how much a member of staff earns in an hour:

  (a)     work out how many hours they work in a year. This is 52 weeks multiplied
          by 5 days, less the number of days of annual and public holidays they are
          entitled to, multiplied by the number of hours they work each day.
    (b)    Divide their annual salary by the answer to (a) above and this is their
           hourly rate.

    If they work part-time, or leave during the year, work out their reduced number of
    hours.

Sick pay and maternity pay

You can only claim sick or maternity pay if it is in line with your organisation’s staff
policy or on the individual’s contract of employment.

You may claim sick or maternity pay, or staff replacement costs, but not both.

Bonus costs

Bonuses, or similar payments to staff, which are taxable, are eligible costs (although
they are not eligible as match-funding contributions - see page 73). However you
must include them in the initial application. These may include:

   bonus payments;
   loans;
   childcare or crèche payments; and
   company cars.


Below are examples of costs which are not eligible:
 bonus payments or any other allowances you give your staff, free of tax;
 golden handshakes;
 relocation costs; and
 exceptional or extraordinary pension rights.

External training

 You can claim the costs of training in connection with ESF activity. However it is
  expected that all organisations that submit an Equal application are in a position
  to deliver their DP activities with little staff training. Exceptions can be made if you
  identify that specialist knowledge will be needed for an individual who has specific
  needs for training that cannot be identified before the DP began.

Beneficiary costs

 For employed beneficiaries, wages and allowances can include employers’
  national insurance and superannuation costs.

 Applications should give numbers of beneficiaries and pay rates as accurately as
  possible. Remember you can only use actual information for the interim
  claims and closure reports when the DP ends.

 Daily travel costs for beneficiaries should show the cost for each beneficiary for
  each day. Travel costs must relate to actual costs incurred for travel, and cannot
  be a lump sum.
 When you are applying for external courses you should show the length of the
  courses, and the cost of travel, board and lodging. You should show the cost of
  the courses under ‘other costs’.

 Costs for caring for children or other dependants should show the weekly or hourly
  costs likely to be involved. Remember you should treat any contributions from
  beneficiaries towards childcare or dependent care costs as DP revenue.
  Payments to non-registered childminders are eligible, although DPs should be
  aware of and comply with legislation in force governing people who work with
  children. Signed records and invoices should be kept which indicate the date,
  hours and amounts paid.

Beneficiary allowances

You can claim beneficiary allowances up to a maximum of £180 a week. Allowances
may affect the level of benefits beneficiaries are entitled to. You should discuss this
with your local Jobcentre Plus office. Allowances may affect beneficiaries’ income tax
situation, as the Inland Revenue may regard some allowances as taxable benefits.
You are strongly advised to check with them before you set the allowance levels.

You must monitor and evaluate the cost-effectiveness of any such allowances. And
you must be able to explain clearly how you will sustain your experimental approach
after Equal funding has stopped.

Bursaries and grants to individuals or companies are not supported.

Other costs

Rent and leasing of buildings

 If you use only part of a building for ESF purposes, you should work out the
  amount you charge to the ESF accordingly.

Depreciation of buildings

 Any asset, including a building, must have a fixed useful life. The length of a
  building’s life varies according to its type and purpose. Your accounting policies
  must set out the period of time and also show the way you calculated the amount
  of depreciation you are claiming. You should remove costs that are not eligible,
  including any EU or national funding help. It is not possible to say exactly how you
  should work out building depreciation as this is up to each individual organisation.
  However, the DWP would expect you to follow the principles set out in Statements
  of Standard Accounting Practice number 12.

 Generally DWP expect that a permanent building used for training purposes, such
  as a college or school, would depreciate in the range of 2% to 5% each year on a
  straight line basis (the same amount each year), reflecting a uniform life of
  between 20 and 50 years.

 If you use the building for 13 weeks in the year for ESF, then DWP expect you to
  set 25% of the depreciation charge against the DP.

 You should provide a list of the premises where you are claiming for depreciation.
Depreciation of equipment you own

 The way you calculate depreciation must be in line with your organisation’s
  accounting policy. You should base claims on the actual costs of equipment you
  own. You can claim depreciation on second-hand equipment unless it has
  previously been claimed. You can calculate depreciation in many different ways;
  the most common being straight line and reducing balance methods (you work out
  the depreciation each year on the value of the assets in the books at the start of
  the year). It is normally expected that the smallest number of years over which
  you can depreciate an item is three years.

 If you receive capital grants towards the costs of fixed assets, you should take
  these grants from the costs of the fixed asset before you work out depreciation
  costs for ESF. Where you use deferred credits to offset depreciation costs, you
  must take the amount of the deferred credit from the depreciation costs for ESF
  purposes. Your accountant will be able to tell you if you use deferred credits.

 You must keep working papers showing how you have worked out depreciation
  costs for your DP. These include the costs and descriptions of the items you
  bought, when you bought them, how you worked out the depreciation, how long
  you spent using the items, where they are, and an estimate of their value now.

   You should provide a list of items to be depreciated and send details of how you
    worked out the depreciation costs together with an explanation of how you
    identified                  specific                  DP                   costs.

Hire and lease of equipment

 Where equipment is not used only by ESF beneficiaries, you should show how
  you have identified your costs. You may need to apportion these costs (see
  Sharing Costs).
 You should show the actual costs of leasing equipment, including VAT where this
  applies (see notes on VAT), as well as the period of time covered.

Finance leases

These are similar to hire-purchase agreements. The lessee (the person who leases
the equipment from someone else) is responsible not just for maintaining the
equipment but also for insurance, repairs and so on. At the end of the lease the
equipment becomes the property of the lessee.

The costs of leasing equipment under a finance lease are not eligible. You should
treat the item you leased as a fixed asset and depreciate it (work out its loss in value)
in line with your accounting policy. You should work out the depreciation against
market value on the same basis as you would for equipment you own.

Operating leases

Under this type of lease, the equipment remains the property of the lessor (the
person who leases the equipment to you).

You can claim the costs of operating leases if you can show that the costs of the
lease are competitive and are similar to the rates charged in the market place.
However, if a leasing charge for equipment (in any one year) went over, or closely
matched, the full cost of buying the item it would be seen as an attempt to introduce
capital expenditure as an eligible item under a different heading, and capital
expenditure (over £1,000) is not eligible.

Leasing properties

Only the depreciation on the actual cost of the lease can be considered as eligible.
Where 'peppercorn’ rent is paid, you only include the depreciation on the actual
amount you paid for leasing the property in the calculation for the interim progress
reports or closure reports when the DP ends. If your accounting policy does not
include depreciation of leased properties, use the accounting standards which apply
in Great Britain.

Buying consumables

You should give a list of consumables you need to buy with the estimated
expenditure, on the application form. Treat IT software in line with your usual
accounting policy.

Buying small items of equipment

You must give a list of small items you need to buy, with the estimated expenditure,
on the application form. No single item can cost more than £1000. There is no limit
to the number of small items of equipment under £1,000 which you can claim for.

The total expenditure on small items of equipment will be taken into account when
assessing your DP’s value for money.

It is important to remember that when you buy IT equipment you cannot claim
separately for each component part, such as the monitor, keyboard, printer and so
on. ESF consider a computer to be a complete set-up.

You can claim for the depreciation of equipment you own.

You should not claim for equipment costing under £1000 unless you can identify the
items in your accounts.

Expenditure on small items of equipment, such as protective clothing for
beneficiaries to use, is eligible providing it can be justified in terms of the Equal
theme and the specific objectives under which your DP is funded. You must be able
to demonstrate that the expenditure has met the identified needs of the beneficiaries.
The equipment will remain your property and not the individual beneficiary’s.

Second-hand equipment

You can claim for the purchase costs of second-hand equipment providing:

        the equipment has not been originally purchased using state or Community
         grants;
     the price doesn’t exceed its market value; and
   it is purchased from an organisation outside the DP.
You will need to provide evidence that the second-hand equipment you have bought
is at the normal ‘going rate’. It is unlikely that commercially available second-hand
equipment has been bought using public money. However, if you buy equipment
from another organisation, you must get a declaration from them that they did not use
grants to purchase the equipment in the first place. If a grant was used to purchase
the equipment, you cannot claim any of the costs in the claim.

No single item can cost more than £1000. There is no limit to the number of small
items under £1,000 which you can claim for. The total expenditure on small items of
equipment will be taken into account when assessing your DP’s value for money.

Bank charges

The lead partner or DP Ltd must set up a separate bank account to administer the
Equal DP during Actions 2 and 3 and you can claim for costs of opening and
administering this account2.

You cannot claim for debit interest charges or other purely financial expenses.

Transnational financial transactions (for example, commission on currency
exchanges) are an eligible cost.

Adapting premises and minor repairs and maintenance

The costs are eligible providing the adaptations and repairs or maintenance are
minor. As a rough guide, any work costing over £750 cannot be considered as
‘minor’. For example if you want to adapt your premises for easier access for people
with disabilities, the work will not be eligible unless it is classed as minor.

Costs of caring for children and dependants and other support costs

Equal opportunities is one of the leading principles of Equal, and you should
consider this carefully when you design your DP. Theme H specifically tackles
gender gaps and job desegregation but equal opportunities cuts across all themes. If
you provide care for dependants, you are demonstrating your commitment to this.

All Equal DPs are encouraged to provide for the care of children and dependants.
Costs, such as the provision of a crèche, are items of eligible expenditure. Other
support costs to help disabled people or disadvantaged groups to take part are also
eligible costs.

Care costs can only be supported as part of a total package attached to eligible ESF
activity. Care for children and dependants cannot be supported by itself.




2
    However, if this is not possible due to financial policy or regulations, the lead partner or
DP Ltd may use its main bank account, providing it contains a unique cost centre for the DP
so that all financial transactions relating to the DP are clear and transparent.
Match funding

Match funding is the amount organisations (other than ESF) give towards the eligible
costs of the DP. This section explains:

   the roles and responsibilities of a match funder;
   the difference between public and private match funding;
   ‘in-kind’ contributions; and
   how you can use volunteer time as match funding.

The amount of ESF payable will not be more than the total eligible expenditure
excluding contributions in-kind.

Public match funding and contributions from the private sector

Match funding is an essential part of how ESF works. ESF can only meet a part of
eligible costs and the balance has to be found from other sources. This balance is
known as match funding. The largest amount that ESF can provide (intervention
rate) forms part of the agreement between the UK Government and the European
Commission.

Match funding may come from the public sector - public match funding - or the
private sector - private match funding. You must have public match funding for at
least 10% of the total cost of your DP.

You will have to provide a Public Match Funding Certificate (PMFC) that shows you
will be getting the funding. Details of how to fill in the certificate are issued
separately with the certificates. If you are both the lead partner and you are going to
provide all your own match funding, you will also need to fill in a PMFC.

At closure stage and at agreement anniversary, you will complete a General
Statement of Expenditure (GSE) for each public match funder to confirm the actual
contribution each public match funder has made to the DP.

In Equal, you cannot be a match funder and provide external expertise.

The responsibilities of public match funders

The match funder must:

 contribute to the actual eligible costs of the DP;
 inform the lead partner if they make any changes to the match funding they are
  providing or to the agreement which must be reported to the relevant Support
  Unit;

 make sure the funds are in line with the criteria for public match funding;

 make sure the funds used to attract ESF are eligible (for example, ‘clean’ i.e. do
  not contain any element of European money);

 carry out regular and formal monitoring of the DP to make sure that effective
  management and financial controls are in place; and
 make sure that ESF rules are being kept to.

In cases where there is more than one public match funder, the responsibility will
normally lie with the match funder providing the highest level of funds - the lead
match funder - unless they make another agreement. Only public match funders can
act as the lead match funder.

The match funding agreement

The public match funder must sign a Public Match Funding Certificate to confirm the
amount of match funding they expect to provide. This certificate should not be
considered a legal agreement. However, to reduce the risks of match funders not
providing expected amounts, you may want to make a formal agreement with the
match funder to make sure that they will:

 provide an agreed percentage of the approved DP costs;
 fulfil their responsibilities set out in the Public Match Funding Certificate;
 allow representatives from the EC, DWP, other government bodies, the Support
  Units and any other relevant monitoring bodies access to ESF records; and
 maintain clear records as required by EC and ESF regulations and guidance.

The agreement should refer to the ESF-approved DP activity as described in the DP
work plans.

Colleges must now notify their local LSC of any Equal DPs they are match funding.
As Equal is not co-financed, they must obtain specific local LSC approval to use LSC
core funds as match funding on such DPs.3 In such cases, the local LSC should also
be accountable for using LSC core funds as match funding, and so it follows that the
LSC - not the college - should sign the Public Match Funding Certificate (PMFC).

Definition of public match funds

A public match funder is an organisation which directly or indirectly receives over
50% of its main funding from central or local government.
To decide if your organisation can supply public match funding, work out your
previous financial year’s receipts, excluding any EU monies, and the income forecast
for the following year, again excluding any EU monies. If over 50% of the net amount
(after deductions) comes from central or local government sources, you are able to
provide public match funding for ESF-supported DPs.

Non-profit making organisations, whether incorporated or unincorporated, registered
with the Charity Commission can supply public match funding. The registration must
be maintained throughout the period of the claim for ESF support. For fuller
information contact the Charities Commission or visit their website. If you are an
unincorporated organisation, you may be personally liable if you need to repay ESF.
If you are in any doubt about this, you should ask your Support Unit.

Universities are classed as supplying public match funding.


3
    Please refer to the LSC website at www.lsc.gov.uk/news_docs/Circular.01.19.pdf for further
details; the section on Co-financing is on pages 22-24 of the Circular.
Definition of private match funds

For ESF purposes, private match funds are defined as any money originating from
private enterprise, including:

      public limited companies;
      private limited companies;
      partnerships which have no shareholders;
      co-operatives;
      self-employed people; and
      individual investors.

Volunteer time is also treated as private match funding as the individual is viewed as
the match funder.

What funds can you use for match funding (actual and in-kind)?

Whether private or public match funding there are two types of match funding -
actual and in-kind.

Actual match funding

Other than depreciation charges, actual match funding within the meaning of the EU
and ESF regulations is in the form of cash payments.

The costs incurred by the lead applicant and donated as match funding (for example
staff time and overheads) should always be classed as actual match funding as they
appear in the accounts of the lead applicant. Depreciation charges incurred by the
lead applicant and by its partners should also be classed as actual match funding.

Match funding in-kind

In-kind match funding is where an organisation or individual provides a service or
product, but the actual cost of the service does not appear in the accounts of the lead
partner. Examples include:

 time spent by the match funder’s staff while they are working on the DP;
 rent for premises payable by the match funder; and
 administration costs carried out by a third party.

There are a number of points you should consider when you estimate your in-kind
match funding at the application stage:

 the expenditure must be eligible for ESF;

 the organisation (or individual) providing the service or product must agree to you
  using it as match funding for the Equal DP;
 the organisation (or individual) providing the service or product must be able to
  provide clear records which clearly show its actual cost. All match funding must
  be verifiable and at cost – match funders cannot make a profit from ESF4;

 if staff costs are to be used as in-kind match funding, the costs must be supported
  by time sheets showing the amount of time individual staff members have spent
  on the DP;

 only the actual staff salary costs can be used to calculate the match funding;

 non-staff materials or services must be supported by invoices which have actually
  been paid by the match funder;

 the use of notional rent, discount charges, lost opportunity costs, profit or other
  ineligible items will not be considered as in-kind match funding; and

 match funding should not be kept at an artificial low level if it goes over the level
  required for the DP.

We must stress that in-kind contributions must be the actual eligible costs incurred
by the match funder. For example, you cannot use costs for buying capital
equipment over £1,000 or for lost opportunities. As with all match funding, it must not
contain anything that has already received EU support.

An organisation providing match funding at actual cost cannot also provide other
services to the DP, outside of the match funding agreement, which are costed at
commercial rates. This is not eligible because a match funder cannot make a profit
from being involved in the DP.

Notional rent or rates

If a local authority, for example, has provided accommodation for the DP at a cost
lower than the normal commercial cost, only the actual rent it paid is eligible for ESF.
It should not use the value of the property in the open market; this is not eligible for
ESF support.

Rate or rent rebates are not eligible as match funding.

Lost-opportunity costs

Many organisations rent or hire out rooms on a commercial basis. You cannot use
the notional rent or hire of the room as the basis of your costs, unless there are clear
records showing that you actually paid the rent. The costs of the room overheads
such as electricity or rent are eligible for ESF, providing you can show that you have
claimed only the costs of the overheads while you were actually using the room.



4
  You must take care to identify the audit trail for in-kind match funding. For example, if the
match funder donates software to the DP that it has developed or been given at no cost, it
would be not be possible to identify the actual coast incurred by the match funder. The match
funder cannot draw up a notional invoice using, for example, the cost of the software on the
open market because the match funder has not actually paid for the software. This can be a
problematic and complicated area, so you should seek guidance from the Support Unit if you
are in any doubt about the validity of in-kind match funding.
Discounts

When an organisation provides a service for the DP and discounts the price, only the
net amount actually paid is eligible for ESF support.

Using beneficiary wage costs as in-kind match funding

You can use the wages or salary costs of employed beneficiaries as match funding
in-kind. Like any other match funding, there must be a clear audit record to support
the amounts. Many lead partners have difficulties in demonstrating what costs have
been incurred because it has not been made clear to the employer from the
beginning of the DP what the ESF requirements are. For match funding to be eligible
it must:

  accurately reflect the actual wage or salary cost of the individual beneficiary;
  only be used for that time spent on eligible DP activity; and
  be supported by written confirmation from the match funders.

You may be asked to show that time spent on ESF-supported activity has been
allocated in a fair and equitable manner. So you will need to account for all staff time
spent by an individual to justify the amount you allocated to the DP.

Where you use estimated or notional costs, or where you cannot confirm
written evidence, the match funding will not be eligible.

Because of the risks involved in not being able to confirm match funding amounts, we
strongly recommend that you enter into an agreement with the match funders before
the DP starts. Match funders often do not welcome requests for information at a later
date. An agreement could include the following information:

 clear details of what help you or individual beneficiaries will receive from the DP;
 who is responsible for maintaining up-to-date, accurate records of what the
  beneficiary is doing;
 how you will monitor this information; and
 who will hold this information and how it will be safely maintained and made
  available if required.

Information that will be needed to support interim progress reports or closure reports
when the DP ends will include:

 the actual wage or salary costs of individual beneficiaries;
 timesheets showing accurate records of how the beneficiaries are involved in the
  DP; and
 clear records showing the beneficiaries’ activities.

When you work out the in-kind costs you must remember:

 you can use only ‘actual’ staff costs, not lost-opportunity costs;
 you can claim time spent travelling to a DP activity if you can provide proof of the
  journey and the time you are claiming for is paid by the employer;
 an employer’s pension and national insurance contributions are eligible, but
  commissions, bonuses and benefits in-kind are not; and
 you cannot include the employer’s overheads.
Extra travel or living expenses are eligible if they are:

 reasonable;
 represent the actual amount paid; and
 form the normal terms and conditions of employment in the organisation.

You should:

 make sure that normal call-out rates used in many companies are not used as
  these will often include elements that are not eligible; and
 identify any development in the workplace on work records, for example on activity
  logs.

It is important to tell individuals or companies taking part that if they are asked, they
should be able to provide this information for further examination by auditors.

It is not possible to cover everything in this part of the guidance. If in doubt contact
your Support Unit.

Volunteer time

Unpaid voluntary work is eligible as private match funding in-kind. In addition to the
normal rules for match funding, the following conditions apply.

 You cannot treat beneficiaries as volunteers during their time on the DP.

 You must cost all volunteer-time contributions using the method and guidance set
  out.

 You must make it clear to the volunteers from the beginning that they are helping
  the DP in their own private time and they are not employed on the DP.

 You will need to show payment claim and closure entries for volunteer time. The
  lead partner should hold complete, accurate and up-to-date records, which show
  not only the time sheets of volunteers but also a description of their activities. You
  should be able to match the information held to interim progress reports or closure
  reports when the DP ends. If you cannot do this, the relevant report entries will
  not be classed as eligible.

 The total amount of volunteer time will form part of the evaluation by your external
  auditors. See the section about external audit requirements for full details.

 If any paid employee performs additional duties on a voluntary basis, the costs are
  not eligible.

 The tasks performed by the volunteer should match the job titles and the notional
  rates given in the guidance.

 If a volunteer performs a task, which is outside of the range of the job titles
  provided, you must ask your Support Unit for approval. The Support Unit will need
  written evidence to justify technical or specialist rates.
 If a volunteer does the same or similar duties as paid staff, the rate allowed for the
  volunteer will be either the notional rate or the salary rate of the paid employee,
  whichever is lower.

Methods for valuing unpaid volunteer time

You will need to decide what DP tasks the volunteer is doing and which of the
following roles best describes their job. You should use the notional salary rates
below to work out their cost.

Role                               Notional full-time salary      Theoretical hourly rate
Project manager                    £29,000                        £16.76
Project co-ordinator               £23,000                        £13.13
Project researcher                 £23,000                        £13.13
Project administrator              £16,300                        £ 9.38

These rates may change during the life of the Programme. If they do, the new
rates will appear on the Support Unit websites. It is important that you keep up
to date with any changes.

You will need to show that the jobs carried out by volunteers are in line with the job
title. For example, if you are claiming volunteer time for a DP manager, you will need
to keep records to show that the job they did and the time spent on that job is
appropriate to that role. The DP co-ordinator and DP researcher rate is appropriate
for a volunteer trainer. If the volunteer changes their role at any time, make sure you
use the appropriate rate.

A different rate for more technical or specialist roles will be paid if a realistic price for
the services can be reached. Examples could include signing for the deaf or
providing qualified mentors for people with learning difficulties. However your
Support Unit will need to approve the proposed rate at the start of the DP. You must
provide clear evidence that the proposed rate is the normal ‘going rate’ for the job.
Evidence could include job adverts for similar work or the existing pay of a volunteer
who is already working on similar tasks.

It is important to remember that the value of volunteer time is based on the
theoretical value of the tasks performed by the volunteer for the DP and not the
current earnings of an individual in their usual paid employment.

Special arrangements for sole traders and partnerships

Because of the difficulties involved in getting actual salary or wage costs from sole
traders and people in partnerships, there are special rules which you can use.

Where sole traders or people in partnerships are staff or beneficiaries and their wage
or salary costs are used as private match funding you can either:

   continue to verify their actual wage or salary costs by using their previous year’s
    earnings; or
   use a notional hourly rate of £10 an hour to calculate wage or salary costs.

A sole trader is an individual who has sole responsibility for their business
management, works alone and is self-employed. Partners are defined as an
association of from two to twenty people carrying on business in common with a view
to a profit.

If you intend to use the £10 an hour rate, you must make sure the beneficiaries and
staff can prove their eligibility and status as:

   sole traders or partners; and
   people currently registered as self-employed for tax purposes with the Inland
    Revenue.

You can only use the fixed hourly rate of £10 for sole traders or partners. In line with
ESF requirements, you will also need to record the number of DP hours carried out
by beneficiaries and staff.

Funds from government programmes as match funding

ESF can be used to enhance government programme contracts. However, there are
some government programmes that have ESF allocated to them centrally. Also some
government funding schemes will include ESF. Any programmes that already
include ESF cannot be used as match funding for Equal. If in doubt, seek guidance
from your Support Unit. Funding from other European Programmes such as ERDF
cannot be used as match funding.

The following programmes will be co-funded using ESF allocated to them centrally so
you cannot use them as match funding. You must be able to confirm the status of
any government programme used as match funding with the appropriate Department.
If in doubt, seek guidance from your Support Unit.

Connexions

Connexions Service Personal Advisers (PAs)

National Training of Personal Advisers will be funded centrally. Other Connexions
match funding may be funded at a regional level. You will need to confirm with your
contractor if you are able to use Connexions funding streams as Equal match
funding.

Adult Learners Week

Childcare

ESF support for government funding for childcare initiatives paid through the local
authority (LA) or Early Years Development and Childcare Partnerships (EYDCPs)
this will be clearly identified. Currently DPs supported are:

       recruitment campaigns
       teen parents
       Unblocking Barriers to Training and foundation stage training
       wrap around projects including Daycare Expansion and toy libraries.

LAs and EYDCPs in any doubt about match funding childcare grant funding for ESF
purposes should contact Leander Bracken at:

DfES Sure Start Unit
Level 2 A Caxton House
Tothill Street
London
SW1H 9NA
Phone: 020 7273 1388

e-mail:leander.bracken @dfes.gsi.gov.uk

Student support

Opportunity bursaries cannot be used as match funding.

Information on the eligibility of other government programmes as match funding for
ESF projects is given in www.dti.gov.uk/europe/mf1.htm - mf4.htm.

Other government programmes

For guidance on using LSC funds as match funding see page 69.

Because of the wide range of programme funds that you could use as match funding,
it is not possible to identify every possible source of funding or how you can use it to
match fund. When you apply for Equal, you will be asked to demonstrate that your
DP fulfils the added-value criteria (see separate section). Generally you should make
sure that:

 your DP has outcomes which you can identify and measure separately from those
  paid for by the programme; and
 your DP aims are consistent with programme aims.


For example you could:


   use Modern Apprenticeship (MA) funding to provide match funding for a DP
    for people under 19 to access MA; or
   increase the numbers of people on MA who are over 19; but
   not use MA to fund a DP aimed at long-termed unemployed people over the age
    of 25.

ESF and New Deal

If you want to use New Deal as match funding for Equal you will need to make sure
that your DP and the New Deal share common aims. The most obvious route will be
to develop activities which provide support for the long-term unemployed and young
unemployed who are at risk from exclusion in the labour market. Jobcentre Plus will
need to endorse any Equal application before it can be approved. (See Jobcentre
Plus guidance for use of New Deal with ESF.) Jobcentre Plus is now a co-financing
organisation.

You can use contract funding, allowances or wage subsidies and money to meet
individual training needs, for each of the New Deal options, to match fund eligible
Equal activities. You can also use contract unit costs for the New Deal Gateway for
match funding where activities are eligible and would add value.

You can use ESF to fund eligible activities, which add value to core New Deal
projects. Examples of these activities include:

 additional training to that funded by New Deal in the Full -Time Education and
  Training Option;

 additional training - within the New Deal period or in a specified period afterwards
  - in the Employment, Voluntary Sector and Environmental Task Force options;

 increasing wage subsidies during the New Deal option where these lead to
  continuing work or self-employment and, in the case of Voluntary Sector and
  Environmental Task Force, where these confirm employed status;

 subsidising wages following the New Deal period, where this leads to further
  outcomes;                                                               and

 providing additional places for those not eligible for New Deal support, for example
  women returners and young people not eligible for New Deal.

You can use ESF to supplement New Deal waged options where this will add value,
provided:

   recipients are not substituting for permanent public sector jobs; and

 the period of employment will lead to stable employment or sustainable self-
employment.

The maximum ESF contribution towards such a subsidy is 50% of the hourly adult
minimum wage multiplied by 40 hours. So, for an Equal DP, the maximum payable
will be £90 a week. This is based on the current minimum hourly rate of £4.50.

The calculation is: £4.50 x 40 hours x 50    = £90
                                       100
The subsidy can be paid for 52 weeks.

It is a requirement of ESF that you use its support to add value in a cost effective
way, by supporting activities which would not otherwise have taken place or which
would have been undertaken less effectively. Examples of ways in which ESF may
be used to add value to DPs include:

 an increase in the breadth or duration of training resulting in additional NVQs or
  qualifications units;

 an increase in the number of participants receiving training, to include those not
  eligible for New Deal;
 an increase in wage subsidies to make jobs secure, including doing it through an
  intermediate labour market;

 a period of wage subsidy following New Deal where this leads to improved
  employability or stable employment through further outputs such as guidance,
  additional qualifications or units and an improved employment record.

A key requirement is for a DP to have additional, measurable outcomes with a clear
link between these and the additional funding.

Examples of how value can be added to wage subsidies leading to improved
employability or stable employment include:

 using ESF to extend the period of subsidy from 6 months to 9 to12 months, and
  the employer promising to keep the participant for at least another three months;

 using ESF to extend the period of subsidy from 6 months to 12 months with the
  intention of keeping the beneficiary in stable employment;

 where the New Dealer has extra disadvantages or disabilities which would mean
  that 6 months would not be long enough to enable them to reach the standard
  needed by the employer for continued employment; and

 where the occupation concerned is one where women or men are under-
  represented and where additional subsidised employment would enable them to
  be trained to the necessary standard and then employed.

In the case of wage-subsidy schemes in the private sector, employers will be
expected to have stable jobs available for participants who reach an acceptable
standard by the end of the New Deal period.

You cannot use ESF to part - fund permanent public sector jobs. However, where a
training course is intended to prepare a trainee for private-sector employment or
where the training is at foundation or pre-entry level, temporary placements may take
place within the public sector. Where the public sector contracts work out to private-
sector firms, the contracted firm is normally considered eligible for ESF support for
training individuals.

The ESF contribution is limited to 50% of the total DP costs. New Deal projects
bidding for Equal support are advised to take care not to commit themselves to
expenditure which they cannot support because they do not have enough match
funding. Potential DPs are also advised to work out a realistic through flow and to
discuss the number in the target group and projected take-up levels with their
Jobcentre Plus District Manager.

Beneficiaries will be able to complete their Equal DP activity alongside any New Deal
commitments unless (following agreement during the New Deal Gateway) a different
option would offer them a greater chance of entering and retaining employment. In
most cases, New Deal Personal Advisers will agree with Equal beneficiaries that
Equal provision should continue during the Gateway period of New Deal. When New
Dealers reach the Options phase, we expect that, in most cases, New Deal funds will
be matched with Equal provision to enable a full- time New Deal Option to build on a
part-time Equal course.

								
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